Infosys shares jump nearly 4% as Rs 18,000 crore buyback begins

Shares of Infosys rose nearly 4 per cent on Wednesday after the company announced its largest-ever share buyback worth Rs 18,000 crore, which will open for subscription on Thursday, November 20.

On the BSE, the stock closed at Rs 1,541.25, up 3.74 per cent, after touching an intraday high of Rs 1,542.85. At the NSE, it also gained 3.74 per cent to close at Rs 1,542. The company’s market value increased by over Rs 23,000 crore, reaching more than Rs 6.4 lakh crore, reflecting strong investor confidence.

Under the buyback plan, Infosys will purchase 10 crore fully paid-up shares at Rs 1,800 each. This represents around 2.4 per cent of its total paid-up equity capital. Shareholders can participate in the buyback during the tendering period from November 20 to November 26, 2025.

The company explained that the buyback is a way to return surplus funds to shareholders while ensuring it retains enough cash for strategic initiatives, operations, and future growth plans. Share buybacks can also help increase the value of remaining shares, because fewer shares in the market typically mean higher earnings per share, which investors see as a positive sign.

The buyback is divided into two categories: one for small shareholders and one for general shareholders. Small shareholders are those who hold shares valued at up to Rs 2 lakh as on the record date. They will have a 15 per cent reservation of the shares offered for buyback, or their entitlement, whichever is higher. Currently, Infosys has over 25 lakh small shareholders who are eligible to take part in this reserved portion.

Market experts say the strong response in Infosys’ stock price shows that investors are confident in the company’s financial health and consistent shareholder-friendly policies. The buyback is also among the largest in India’s IT sector, underlining Infosys’ strong cash position and its commitment to rewarding investors.

Analysts note that such buybacks have become an important tool for companies to optimise capital allocation, especially for firms like Infosys with large cash reserves. By returning money to shareholders through buybacks rather than dividends alone, the company gives investors the flexibility to decide whether to sell their shares or continue holding them.

For small investors, this buyback presents an opportunity to earn a premium over the current market price, as the buyback price of Rs 1,800 per share is higher than the stock’s recent trading levels. Institutional investors and large shareholders also see buybacks as a way to enhance shareholder value without affecting the company’s day-to-day operations.

With Infosys setting such a large buyback in motion, it highlights the company’s confidence in its long-term growth prospects and reinforces its position as a leading IT firm in India and globally. Investors and market watchers will be closely following the buyback, as it is likely to impact the stock price and overall market sentiment in the coming days.